Secured Business Loans
When your business needs a substantial cash injection, maybe for something like an expansion, equipment upgrades, or managing cash flow, a secured business loan can be the smart choice. These loans are like a safety net and a springboard rolled into one: they’re there when you need them and can catapult your business forward when the time is right.
- Higher Loan Values: Borrow between £5,000 and £2 million+ based on the asset's value.
- Competitive Rates: Lower risk for lenders leads to attractive interest rates and repayment terms.
- Flexible Options: Use property, equipment, or land as collateral to secure the loan.
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- Tailored Solutions for Your Unique Goals
- Dedicated Support from Start to Finish
- Transparent and Trustworthy Approach
Customised Solutions for Every Business
We know that every business out there is unique, and your loan should be too. So that’s why we’ll help you secure a loan that fits like a glove, so you can focus on moving your business forward. With years of experience helping UK corporations unlock their potential, we’re here to ensure your goals don’t just stay dreams.
"Our funding providers could approve your application for a secured business loan within 48 hours!"
Secured business loans provide a financing option where a valuable asset is used as collateral to secure the loan. This asset can range from commercial properties to personal or business assets like machinery, equipment, vehicles, or inventory. The lender assesses the value of the asset and provides funding based on that evaluation.
The application process for a secured business loan is similar to that of a mortgage, and it may involve a valuation of the asset being used as security. The loan typically has a fixed interest rate, and repayments are made monthly over the agreed-upon term until the loan is fully repaid.
It’s important to note that if the business fails to repay the loan, there is a risk of the secured asset being repossessed by the lender. This is done to recover the outstanding loan amount. It’s essential for borrowers to carefully consider their ability to repay the loan to avoid the potential loss of the secured asset.
Secured business loans can be a viable option for businesses looking for long-term financing and are willing to use valuable assets as collateral to secure the loan. It’s recommended to carefully assess the terms and conditions, including interest rates, repayment terms, and potential risks, before proceeding with a secured business loan.
Why Choose a Secured Business Loan?
Unlock Larger Loan Amounts
Unlike unsecured loans, a secured loan lets you unlock a significantly larger funding amount, and it means you get to enjoy better terms (but unsecured loans are great too). So, if your business turns over £5 million or more, a secured loan could be the powerhouse move you’ve been searching for.
Lower Interest Rates and Flexible Terms
Secure business loans and the collateral that comes with them to give lenders peace of mind, allowing them to offer lower interest rates and more flexible repayment terms. This means you can align payments with your cash flow and keep your finances on track while you focus on growing your business. So, even if it’s five years or ten you need to pay it back, secured loans are designed to work with your long-term goals, giving you breathing room and stability.
How Does Secured Business Finance Work?
Step 1: Initial Consultation
In our initial consultation, we’ll dive into your business’s goals, challenges, and financial needs.
Got assets? Great. Not sure what they’re worth? We’ll help with that too. Our mission is to understand your unique situation and map out the best path forward.
Step 2: Tailored Loan Proposal
Once we know where you’re headed, we’ll craft a loan proposal just for you. You can pretty much think of it as a blueprint for success: so it’s clear terms, transparent rates, and repayment schedules that fit your cash flow (and no surprises either). We’ll also break down how the loan aligns with your strategy, so there are no surprises, instead, just confidence in your decision.
Step 3: Approval and Funding
The final step is about getting you the funds you need, fast. So, thanks to our streamlined processes and strong lender relationships, we’ll push for prompt approval and quick disbursement. You can count on us to deliver the support you need.
"Startups with no trading history can be accepted."
The distinction between tangible and intangible assets is relatively straightforward. Tangible assets are physical assets that can be touched, such as property, equipment, stock, land, cash, accounts receivable, vehicles, and machinery. On the other hand, intangible assets are non-physical assets that cannot be touched but hold value, such as trademarks, patents, copyrights, licenses, and intellectual property (IP). Specialist lenders are willing to consider intangible assets as security for loans, although valuing them can be more challenging compared to tangible assets.
Secured business loans offer several advantages over unsecured loans, including better interest rates. Lenders typically offer larger loan amounts for secured loans, and the value of the collateral used as security will often determine the available funds for borrowing. Longer repayment terms make it easier for business owners to manage the loan, as they can budget effectively over a more extended period, allowing them to focus on business growth.
The presence of collateral in secured loans minimises the risk for the lender, enabling them to offer significantly lower annual percentage rates (APR) to borrowers. Secured business loans can be an option for businesses with poor or bad credit history, as the security reduces the lender’s risk. Even startups with no trading history or credit history can be considered for a secured loan, as they can use their company assets as collateral.
It’s important to note that while secured business loans have advantages, there are risks involved, as with any financial product. It’s crucial to carefully evaluate the terms, conditions, and potential risks associated with securing a loan against your assets. Seeking advice from professionals, such as Winchester Corporate Finance, can help you navigate the process and make informed decisions regarding business funding.
Secured vs. Unsecured Business Loans: What’s Right for You?
Not sure what fits best? That’s what we’re here for, to guide you toward the right choice for your business!
Secured Loans Offer Stability and Strength
If your business has valuable assets and needs substantial funding, then a secured loan just might be a perfect choice. These loans offer high amounts and usually lower interest rates, which is ideal for large-scale investments or overall just long-term goals.
Unsecured Loans Offer Agility and Speed
Unsecured loans are a great option for businesses that don’t have collateral or need smaller amounts fast. While the rates may be higher, the speed and simplicity make them a solid choice for short-term needs.
Why Winchester Corporate Finance?
Here at Winchester Corporate Finance, we’re more than just a lender, we’re your partner in growth. We have the expertise, personalised service, and a commitment to making finance straightforward, we’re here to help your business thrive.
- Expertise: Decades of experience in corporate finance for manufacturing firms and other large businesses.
- Speed: Rapid approvals and fund transfers to meet your tight timelines.
- Transparency: Clear terms and competitive rates with no hidden fees.
- Support: A dedicated team of financial specialists will guide you through every step of the process.
So, what are you waiting for? Are you ready to take the next step? Go ahead and contact our team today to discuss your secured business loan options.
Frequently Asked Questions
What is the best collateral for a business loan?
How much collateral is needed for a secured loan?
The amount of collateral that is needed for a secured loan should either equal or be greater than the loan amount. This is so that if the repayment cannot be made, the lender is able to make back their money through repossessing the assets that the loan was secured against.
Do I need to have a valuation to get a secured loan?
Yes, you will typically need a valuation of the asset that you are using to secure your loan. This valuation helps the lender to determine whether or not they can secure the loan amount that you are looking for. Here at Winchester Corporate Finance, we can help you obtain a valuation of your assets to help make the process as smooth as possible.
